Princeton mathematics department

Assignment Help Finance Basics
Reference no: EM133111206

Starting a year from now and making 10 yearly payments, Pierre would like to put into a retirement account enough money so that, starting 11 years from now, he can withdraw $30,000 per year until he dies. Pierre is confident that he can earn 8% per year on his money for the next 10 years, but he is only assuming that he will be able to get 5% per year after that.

(a) How much does Pierre need to pay each year for the first 10 years in order to make the planned withdrawals?

(b) Pierre's will states that, upon his death, any money left in his retirement account is to be donated to the Princeton Mathematics Department. If he dies immediately after receiving his 17th payment, how much will the Princeton Mathematics Department inherit

Reference no: EM133111206

Questions Cloud

What role did internal auditors and external auditors play : What role did internal auditors and external auditors play in uncovering the fraud? Share an example from your article
What is the segment margin for the deluxe product : Variable costs were $380000 for Standard and $110000 for Deluxe. What is the segment margin for the Deluxe product
Gain the highest yield for treasury cash : Based in the United States. One of your responsibilities is to gain the highest yield for your treasury cash. Complete the following:
How much revenue should be reflected in the fiscal year : Total tuition paid by students for the summer session amounted to $117,000. How much revenue should be reflected in the fiscal year ended June 30, 2019
Princeton mathematics department : Starting a year from now and making 10 yearly payments, Pierre would like to put into a retirement account enough money so that, starting 11 years from now, he
Why would you choose to invest in stocks rather than bonds : If you had $100,000 dollars to invest why would you choose to invest in stocks rather than bonds
Hpr and excess return : Suppose that you bought a share of stock of Company ABC at $100 on January 1, 2019 and sold it at $110 on January 1, 2020. You received $5 as cash dividend just
Calculate the contribution margin per machine hour : Dalton Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Calculate the contribution margin per machine hour
What is its total return for the 6 months : A zero-coupon Treasury has a face value of $1000 and is expected to mature in half year. Its current price is $950.

Reviews

Write a Review

Finance Basics Questions & Answers

  Rambles toyland makes a product that sells for 70 per unit

rambles toyland makes a product that sells for 70 per unit and has 45 per unit in variable costs. annual fixed costs

  Which bank should you choose in given case

Your current bank is paying a 6.25% annual simple interest rate with monthly compounding. You can move your money to Harris Bank that pays 6.25% annual compound

  Discussion of the impact of economic environment

The firm imports high quality wool to Britain from foreign suppliers located in Australiaand the New Zealand.

  What are the net profits and losses

What are the net profits and losses if, after a period of time, the prices are? Why does the portfolio manager establish these two positions?

  Find the present value of these ordinary annuities

find the present value of these ordinary annuities. discounting occurs once a year.a. 400 per year for 10 years at 10b.

  Different industries in the australian stock market

The following table shows characteristics of firms from different industries in the Australian stock market.

  What are the differences between the capital asset pricing

What are the differences between the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT). Indicate at least 2 other factors affecting stock returns according to Arbitrage Pricing Theory models.

  Managing inventory and cash flow crisis

Inventory management is critical to success in the simulation. With respect to your team, discuss how you decide to balance the risk of stockouts against the costs of maintaining excess inventory.

  Certificate of need law prevents hospital service

Many states, such as Virginia, have certificate-of-need laws that prevent hospitals from adding health care capacity

  What are the top 10 canadian stocks

What are the top 10 Canadian stocks below $9? One example is the cineplex stock.

  What is the estimated cost of common equity

What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

  Percent compounded monthly and plan

You feel that you will need $1.9 million in your retirement account and when you reach that amount, you plan to retire.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd